Surya Roshni subsidiary to invest Rs400 cr
Lighting solution provider Surya Roshni group company, Surya Global Steel Tubes (SGST), has announced that it will invest Rs400 crore to set up a greenfield steel pipe manufacturing plant in Bhuj, Gujarat.
The company has already bought the land and placed orders for the machinery.
The new plant is part of the company’s strategy to cater to demand steel pipes in the oil and gas sector. The plant will have an initial capacity of two lakh metric tonnes and is expected to be commissioned by December next year.
SGST is targetting sales of Rs2,000 crore in the first year of operations of the plant. The company plans to export 80% of the production, while the rest will be for the domestic markets. The project will be funded through internal accruals and debt.
SGST has a steel pipe and tubes manufacturing unit at Bahadurgarh in Haryana with an annual capacity of three lakh metric tonnes and accounts for sales of about Rs1,000 crore.